How to calculate IIT on salaries and wages?

Individual income tax on salaries and wages is computed at progressive rates ranging from 3% to 45% as follows. An allowance of RMB 3,500 and RMB 4,800 per month are deducted from salaries and wages to arrive taxable income for local employees and foreigners, respectively.

No. Taxable income Tax Rate Quick calculation deduction
 

1

 

<= RMB 1,500

 

3%

 

0

2  

RMB 1,501 – 4,500

10%  

105

3  

RMB 4,501 – 9,000

20%  

555

4  

RMB 9,001 – 35,000

25%  

1005

5  

RMB 35,001 – 55,000

30%  

2755

6  

RMB 55,001 – 80,000

35%  

5505

7  

>= RMB 80,001

45%  

13505